Is IPG Photonics Corporation (IPGP) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. Interestingly, Alexander Roepers’ Atlantic Investment Management said goodbye to the largest stake of all the hedgies studied by Insider Monkey, worth close to $3 million in stock. Crispin Odey’s fund, Odey Asset Management Group, also cut its stock, about $2 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as IPG Photonics Corporation (NASDAQ:IPGP) but similarly valued. These stocks are Realogy Holdings Corp (NYSE:RLGY), Cinemark Holdings, Inc. (NYSE:CNK), The Madison Square Garden Co (NASDAQ:MSG), and Genesis Energy, L.P. (NYSE:GEL). This group of stocks’ market caps are closest to IPGP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RLGY 39 1277461 0
CNK 17 281357 -1
MSG 28 701376 -3
GEL 7 22104 0

As you can see these stocks had an average of 23 investors with bullish positions and the average amount invested in these stocks was $571 million. That figure was $143 million in IPGP’s case. Realogy Holdings Corp (NYSE:RLGY) is the most popular stock in this table. On the other hand Genesis Energy, L.P. (NYSE:GEL) is the least popular one with only seven investors holding shares. IPG Photonics Corporation (NASDAQ:IPGP) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Realogy Holdings Corp (NYSE:RLGY) might be a better candidate to consider taking a long position in.

Disclosure: none